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tv   Street Signs  CNBC  March 3, 2010 2:00pm-3:00pm EST

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including some of the ideas the republicans offered during the health care summit like funding state grants on medical malpractice reform and curbing waste and fraud and abuse in the health care system. my proposal also gets rid of many of the provisions that had no place in health care reform, provisions more about winning individual votes in congress than improving health care for all-americans. now despite all that we agree on and all the republican ideas we've incorporated, many, probably most republicans in congress just have a fundamental disagreement over whether we should have more or less oversight of insurance companies. and if they truly believe that less regulation would lead to higher quality, more affordable health insurance, then they should vote against the proposal i've put forward. some also believe that we should
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instead of doing what i'm proposing pursue a piecemeal approach to health insurance reform where we tinker around the edges of the challenge for the next few years. even those who acknowledge the problem of the uninsured say we just can't afford to help them right now which is why the republican proposal only covers 3 million uninsured americans while we cover over 31 million. the problem with that will approach is that unless everyone has access to affordable coverage, you can't prevent insurance companies from denying coverage based on pre-existing conditions. you can't limit the amount families are forced to pay out of their own pockets. the insurance reforms rest on everybody having access to coverage. and you also don't do anything about the fact that taxpayers currently end up subsidizing the uninsured when they're forced to go to the emergency room for care to the tune of about 1,000 bucks per family.
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you can't get those savings if those people are still going to the emergency room. so the fact is, health reform only works if you take care of all of these problems at once. now, both, during and after last week's summit, republicans in congress insisted that the only acceptable course on health care reform is to start over. but given these honest and substantial differences between the parties, about the need to regulate the insurance industry and the need to help millions of middle class families get insurance, i don't see how another year of negotiations would help. moreover, the insurance companies aren't starting over. they're continuing to raise premiums. and deny coverage as we speak. for us to start over now could simply lead to delay that could last for another decade or even more. the american people and the u.s. economy just can't wait that
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long. so, no matter which approach you favor, i believe the united states congress owes the american people a final vote on health care reform. we have debated this issue thoroughly. not just for the past year but for decades. reform has already passed the house with a majority. it has already passed the senate with a super majority of 60 votes. and now it deserves the same kind of up or down vote that was cast on welfare reform, that was cast on the children's health
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insurance program, that was, thanks used for cobra, health coverage for the unemployed and by the way, for both bush tax cuts. all of which had to pass congress with nothing more than a simple majority. i therefore ask leaders in both houses of congress to finish their work and schedule a vote in the next few weeks. from now until then, i will do everything in my power to make the case for reform. and i -- and i urge every american to wants this reform to make their voice heard as well, every family, every business, every patient, every doctor, every nurse, every physician's
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assistant make your voice heard. this has been a long and wrenching debate. it has stoked great passions among the american people and their representatives. and that's because health care is a difficult issue. it is a complicated issue. if it was easy, it would have been solved long ago. as all of you know from experience, health care can literally be an issue of life or death. and as a result, it easily lends itself to demagoguery and political gamesmanship and misrepresentation and misunderstanding. but that's not an excuse for those of us who are sent here to lead. it's not an excuse for us to walk away. we can't just give up because the politics are hard. i know there's been a fascination bordering on obsession in this media town
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about what passing health insurance reform would mean for the next election. and the one after that. how will this play? what will happen with the polls? i will leave it to others to sift through the politics. because that's not what this is about. that's not why we're here. this is about what reform would mean for the mother with breast cancer whose insurance company will finally have to pay for her chemotherapy. this is about what reform would mean for the small business owner who will no longer have to choose between hiring more workers or offering coverage to the employees she has. this is about what reform would mean for middle class families who will be able to afford health insurance for the very first time in their lives. and get a regular checkup once in awhile. and have some security about their children if they get sick. this is about what reform would mean for all those men and women
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i've met over the last few years who have been brave enough to share their stories. when we starred our push for reform last year, i talked to a young mother in wisconsin named laura klitska. she has two young children. she thought she had beaten her breast cancer but then later discovered it had spread to her bones. she and her husband were working and had insurance but their medical bills still landed them in debt. and now she spends time worrying about that debt when all she wants to do is spend time with her children and focus on getting well. this should not happen in the united states of america. and it doesn't have to. in the end, that's what this debate is about. it's about what kind of country we want to be.
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it's about the millions of lives that would be touched and in some cases saved by making private health insurance more secure and more affordable. so at stake right now is not just our ability to solve this problem but our ability to solve any problem. the american people want to know if it's still possible for washington to look out for their interests and their future. they are waiting for us to act. they're waiting for us to lead. and as long as i hold this office i intend to provide that leadership. i do not know how this plays politically, but i know it's right. and so i ask congress to finish its work and i look forward to signing this reform into law. thank you very much, everybody. let's get it done. >> all right. welcome to "street signs." the president wrapping up a speech on health insurance reform urging congress to vote up or down on health care
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legislation in the next few weeks. during his speech, the fed released the beige book so let's get immediately to steve liesman. stevie? >> yeah, mark, let's just recap what we've been saying on the bottom of our screen there on the beige book. kind of sunny beige book that was kind of clouded up by the snowstorms and said the economy continues to expand with improvement in nine of 12 districts but the snowstorms did hold back activity in several districts. consumer spending up slightly and manufacturing strengthened. while residential real estate markets improved in a number of districts. i want to go to what the fed is saying about bank lending which they said remains soft and lending standards are tight. look at some of the individual comments here. atlanta said barnes, are concerned about cash reserves. chicago said mid-sized banks held back by strained balance sheets. it said the large banks are seeking out prime borrowers and in dallas, regulatory requirements limit the ability to expand on real estate
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lending. price pressures were under control and some district banks reported a hiring uptick. but the labor market overall remains soft. that's the bottom line on the beige book from the 12 federal reserve districts. >> thank you very much steve liesman. please stick around. more reaction to the fed's beige book. oh, quad box. joining us now prosperity capital management chief economist liam halle gan and suzanne brown and the aforementioned senior economics reporter steve liesman. liam what, do you make of the beige book? >> the way this looks from the rest of the world and i'm from the old world i guess is that while the u.s. is going to avoid a double dip recession we're going to get a k-shaped recovery. >> k-shaped. >> a k-shaped recovery because you're going to get the western world still pointing down pretty anemic if any growth at all in
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aggregate. the emerging markets powering ahead. we're already seeing this in stock indexes, as well. you know, the 19 of the top 20 markets last year were emerging marks. we run an asset management company. we're seeing a lot more interest from main steam investors who won't have touches emerging markets before. >> i guess if emerging marks are going to succeed, perhaps we can export more of those markets. a couple of small positives there anyway. at least a little bit in the way of consumer spending, more optimism than what we saw in the last two beige books and some indication ta housing prices are firming a little bit. we had seen indications in economic releases but never in the beige book have we seen reference to the fact that things are starting to firm. those are two key areas i think we were looking for improvement and we're starting to see a little bit of evidence that thing are continuing to improve. >> the consensus seems to be
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what we really need to see improvement is in the jobs market. what we need is hiring. what's the outlook there? >> of course, you need hiring but highway the banks aren't lending, end the industrialists and entrepreneurs who actually do that hiring aren't going to be able to get hold of working capital. the same thing is happening in the uk but it's even worse. from our perspective on the other side of the lack, we think of course, america will muscle through it. you never underestimate america. obviously you make a lot of stuff. you've got great hi-tech. really are determined people. and, of course, you've got your immigration story that will carry on to keep driving growth in the years ahead. in the end it all comes down to bank lending. while you've still got banks with huge undeclared losses on balance sheets, you're not going to get the interbank market rebooted and the credit markets
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working properly. >> suzanne, talk about th-- zank to a lot of people and keep getting different story. one story i get is ceos are not hiring. there's no demand for loans. another story is the banks haven't cleaned up their books yet so they're not providing loans. which is it? >> it's probably a combination of both. i think your first point is a very good one. so far, there's not a whole lot of need for additional borrowing. companies don't need to borrow. they have probably the largest cash balances if you look at the s&p 500, it's 18% as a percentage of assets. >> because they're scared. >> most past years, we've had more like 8 to 12% as a percentage of assets. if they have all that additional cash on their books, why do they need to borrow? if they needed to invest more, they can use that cash first. i think there is truth to both
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points that you make, but clearly, there's not a great deal of feed to borrow at this point. >> steve liesman, how are you fixed for cash. >> how am i fixed for cash? >> yes. >> deeply in debt but making good time, mark. >> what did you think of the beige book? >> i thought it was actually a pretty good beige book as they go. i think it was zane who said a little bit of firming maybe in places we didn't expect to see it, in residential spending, consumer spending was pretty good. i thought all of these were out there despite the snowstorms. they said some of the activity was still lessened by that. as these things go, i think it was a pretty good one because a lot of the data we've had has been kind of soft. from an anecdotal this contr contradicts that data so i thought it was a good one. >> let's get reaction from the trading floors. cool breeze is back here at the big board and rick santelli in chicago.
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we start with bob pisani. >> hello. the important thing is we didn't get a lot of movement in the stock market. i was encouraged by some of the comments. slightly more optimistic in terms of what the beige book was saying. russell 2,000, it's the big caps that are now for the first time lagging in the last month. retail sales tomorrow. i know the snowstorms hurt. listen, evidence is, valentine's day was strong. evidence is presidents' day was strong. we're expecting pretty good numbers. limited at a new 52-week high. we're expecting same store gains of almost 10% in limit ford tomorrow. that's pretty impressive numbers here. the important thing to bear in mind is victoria's secret was important helped on valentine's day. the discounters should do pretty well. tjx is going to have a strong month. that's chatter is. ross stores, big lots earlier today in their earnings report, they generally beat expectati expectations. that stock up throughout the
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day. we'll get most of those numbers tomorrow morning. just got back from brazil. lots of dynamic activity going on. the etf pretty active today. some of the big names like companhia bra, embraer, companhia energetica up today. rick santelli standing by in chicago. rick, i see the dollar weak again for a second day. >> today's weakness especially needs to be underscored before we get to the charts. today we wiped out several weeks of gains. i always say we can read the fed beige book and it's interesting. but the real litmus test for me is what the markets think of it. as you look at the intraday carts from the major sectors, fix enacted and ten-year, the dollar index you see all the damage was already done on the
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dollar index or the s&p's bob reference, the markets didn't find anything that made it move and made it change its mind. we all know it's about jobs, jobs, jobs. we'll see that on friday. some of the news regarding nonmanufacturing today, we had manufacturing earlier in the week. the employment component of both of those metrics from ism were good. and the challenge earl layoffs that was a positive. you could argue about the yin and yang about the revision on adp. moving it toward less job destruction is still not creation and therein lies the trade. >> rick, thank you very much. you heard the president's speech on health insurance reform. let's bring in chief washington correspondent john harwood. john, what did the president just do. >> basically what he did, mark, was try to put a punctuation point on this health care debate and rally democrats around his plan. it was cloaked in language of outreach to republicans but he knows he's not going to get
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republican support for his plan. democrats know it and so do the republicans. he's trying to firm up moderate and conservative democrats, try to get public opinion on their side so they're not so scared about their elections and that they'll line up behind their approach which is to have the house pass the senate plan have, both chambers pass some fixes to that plan. majority vote in the house and also in the senate because they're going to use the reconciliation procedure which would make it impossible for republicans to filibuster. it's not a slam-dunk but the odds are looking pretty good right now. >> what do they need to do, what hurdle do they need to get over to use the reconciliation procedure? do they need some sort of vote. >> no, they don't need to get over any hurdle to use the procedure. the hurdles are two. one is getting a majority vote in the senate for the changes they want to make and the second to find some way to get past republican amendments. republicans have a right to offer a whole bunch of amendments that can slow the process down, democrats think
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that's not going to work. >> thank you john harwood. up next on "street signs" something funny is in the air. an american wind farm getting $450 million in stimulus funds to build wind turbines but most of the jobs will not be in america. the new battle to stop outsourcing stimulus money. plus the deal-making spigot is on with more than $67 billion in deals since monday. is this the light at the end of the tunnel in the market has been looking for? "street signs" coming right back.
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>> the goal of the stimulus is supposed to strengthen the american economy and that means creating jobs here in the u.s., not in china. but unfortunately, this project in western texas has been the wrul this part of the stimulus, not the exception. >> that was senator charles schumer explaining yes wants to suspend stimulus dollars
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financing renewable energy projects citing a report by the investigative reporting workshop. he says the grant money is going mostly to foreign companies. the american wind energy association says not true. here now is russ choma, author of the piece put out by the investigative reporting workshop and denise bode, ceo of the american wind energy association. russ, i'm going to start with you. >> okay. when i first read this over it, struck me that it was just a small part of this money was going to foreign firms. >> wa we found was that about $2.1 billion has been given out under this grant program and approximately 79% of it has gone to foreign firms. that counts wind angieio thermal. with wind alone, it's about $1.6 billion. this has all been since september 1st when the money first started coming out.
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at least this portion of the stimulus, a big chunk is going to foreign companies. >> are there domestic company who's could have gotten the business. >> that's part of the larger issue. denise might be able to talk about this more. the u.s. is not as strong as some of our foreign competitors in terms of wind. you know, in the u.s. industry took a big hit in the '80s and 90s and european companies are far ahead and they've been very successful in europe. and they've really established a food hold in the u.s. and they've been hch purchasing u.s. companies. the bigger issue is what they're doing with this money once they get it. in terms of turbine manufacturing, there's only two u.s. companies. we found most of the turbines are being built but by foreign companies. it's not that surprising. >> denise, what's your view on this? >> russ knows that's inaccurate. by law, 100% of the money that is invested in the stimulus act
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went to u.s. wind farms with american workers, and it's just not true. in fact it, wasn't even a benefit. it was a tax credit that did not go to manufacturers. it went to wind farms steel in the ground being built in the u.s. in fact, i think part of our biggest concern is that any kind of -- any kind of change in the law right now would stop every project in its tracks. there are 8,000 component parts in a turbine. and so it's critically important that we continue to grow the manufacturing base in the united states by policies like renewable electricity standard that actually create demand for new manufacturing in the u.s. act as a carrot, not act as a stick. >> russ, defend your work. >> i don't think we've -- if you read the report, we are very clear. this money is going to companies who have projects in the u.s. i think the thing that we really sort of latched on to and looked at with this project is the text
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of the stimulus beak says if you have a renewable energy facility, you are eligible to get as much as 30% reimbursed. in the past it's been a tax credit. under the stimulus to make it easier for companies to take advantage of, it was converted to a stack in lieu of a tax credit. so yes, these. s did build wind farms. these projects are so big and take so long to do, some of these project were finished before the stimulus was even passed. most of them were started years before the stimulus was ever sort of considered. >> russ, you know that's not true. wind farms are actually built within a year of, and they have to be placed in service then. that's not true. what actually has happened is these wind farms have been built in the u.s. by americans. it's a tax credit. it has to be qualified by the department of treasury. money has to be spent in the u.s. and the tax credit goes to defray actual costs of steel in the ground, employing american
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workers in the united states. >> so i mean, denise is right. like i said, these projects are built in the u.s. what's really important is looking at where the equipment they're putting into the ground comes from. that's where because manufacturing is where most of the economic activity is. >> we've grown from over 25% back before we had any policy in place to over 50% of these component parts being manufactured in the u.s. and we're on an upward path if we keep policy in place and if we just put a permanent policy in place like an res. >> the way you're hedging makes thee think that russ is right in that a lot of this is foreign components. >> what i said is over 50% is now being built in the united states. >> over 50bers. >> we are a startup industry and the manufacturing needs to be drawn here. we have no national policy. >> so about half, excuse me. so about half is not being built in the u.s. so the money is. >> less than half.
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>> the money is going overseas. >> well the manufacturing parts have to be brought in from somewhere. we have no national policy in place. >> well, that was my first question. >> like we have everywhere else. >> that was my first question how much of this. >> russ said all of the money was going to foreign companies and that's not true. >> i don't believe you said that. he said a big chunk. he didn't say all of it. >> he said 70%. that's not true. every penny under the act is going into american wind farms being built in america. employing american workers. >> all right. unfortunately we have to leave it there, which is as far as i'm concerned still up in the air. no pun intended. we don't have time. i thank you both very much, ruch and denise. >> thanks for the opportunity. >> all right. after taking a three-month vacation, the weak dollar trade is back in a big way. cnbc's ernesto grande is -- kind of wearing a different hat now, huh? looking at commodity oddities? >> like that one?
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mark, you know, the definition of insanity is doing the same thing over and over again and expecting a different outcome. we know the weak dollar trade was just enormous. as mark said, it has been gone for the past three months. but it is back and back in a big way. if you look at the clear-cut beneficiary, at least on the level, it's going to be materials number one today, for the week. the outperformance stark. in fact, it's the only sector today that's up or down more than 1%. in an otherwise quiet market. there's the five-day tally versus the dollar index. you can see really it kicked in midday monday. but and accelerated. the trend just for this report will focus on five days. so the oddities are those stocks that aren't taking part at least over the past five days. in fact, over the past five days of the 31 material stocks in the s&p 500, only one vulcan materials has not participated. interestingly, it is up 3%
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today. 2.7% today. and it has snapped a six-day slump but clearly vulcan materials has some catching up to do, schweitzer mauduit as well as zeus the steel company are the other two that are oddities and not participating at least over that five-day period. >> all right, matthew. thank you very much. up next on "street signs," it's that time already. get ready to stop trading, cramer has worked up an appetite. his hungry trades in two minutes.
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all right, everyone. it's time to stop trading bad money is the reverend jim bob cramer from the church of is working now has joined us. can i get an amen. >> go ahead, hit me. >> jim, how are you. >> couldn't be better. how about you? >> great. i love being on in the afternoon. it's fun. >> it's fun to talk back and forth. you and i love stocks. it's a great thing to talk about. >> talk about devon. >> yesterday, i had the apc ceo
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jim hackette on. he has interest in international properties that are shared with devon. devin is selling all its international properties. anti-i darko can continue to make acquisitions. i think they're going to step up to the plate and buy some of these properties. devon at 70 is ridiculous and cheap. >> you would buy the. >> i would buy the devon. i think that those international properties are worth far more than anybody realizes. >> you are looking at some casual dining stocks here. >> look, i was following what you guys were talking about this morning on "squawk on the street." this dineequity, ihop, it looks like cracker barrel, it looks like darden, but it mostly looks like chipotle, cmg which is going to be expanding with a new style restaurant and opening up in europe, cmg not done going
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up. >> okay. here's what i'm finding hard to believe. radioshack? >> a lot of cash. people talking about the bonds trade. look, radioshack is an lbo waiting to happen. it's finally gotten momentum. it looks a lot like carl's junior to me, a company flush with cash. people do not understand that this company is now making money, no reason for a lot of these retailers to be public, mark. >> radioshack is not making money? >> yeah, they had a good quarter. >> tosoro keeps going up but you prefer somebody else. >> i want to be hedged. i like marathon more because it has the cheapest refinery. and marathon has great oil properties. i don't want to be leavered entirely to refiners. when you see it up, you know the margins are starting to increase, you've got to be there. >> overall market, jim.
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what do you think? >> let me be honest. obama came on. obama talked about a plan that everyone knows is going to set us back in terms of our budget. he killed the market. and that is not an unusual occurrence because he seems to kill the market sometime between 9:30 and 4:00 every day. >> well, i have to admit i have noticed some correlation. i'm not willing to. >> look, people on wall street think the health care plan is going to cost a lot of money. they know he's going to talk about it endlessly. he doesn't say it's going to be cheap. and when you talk about it, you're going to get the market to go down. it's like when they flash a little chiron, the thing about the volcker rule, you know they're going to short goldman. it's pretty much a given. you short and cover when obama's coming on. >> okay. jim, thank you very much, sir. see you tonight at 6:00. and again at 11:00 eastern time here on cnbc's "mad money." if you tivo it, you can put it
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on a loop and watch it continuously. up next, $60 billion in deals since monday. and two of them all cash. is this the real sign of confidence the market has been waiting for? "street signs" coming right back.
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i'm sharon epperson. it looks like oil prices will close just under $81 a barrel. we're closing in on the 20 so high. you'll remember in early january, oil was trading right around $83. high near $85 a darrell. we're looking at this range here for oil prices and looking at
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some strength here led by as bark clays said distill lat demand for december, figures showing the first year over year increase in 27 months. it is the products lead us higher. gasoline is actually at the highest levels we've seen since october of 2008. even though demand continues to be rather lackluster and we continue to see a build in supplies. what is all this mean as we're looking at prices over $80 a barrel for crude oil? well, it does look like we could see price at the pump go well toward that $3 level. keep in mind, we're looking at $2.70 a gallon now approaching the $2.75 we saw earlier this year. that means if we see $3 at the pump, mark. >> more than $67 billion worth of m & a deals unveiled in just the past week. the biggest, of course, being aig's $35.5 billion say of its asian life insurance unit. so will 2010 be known as the
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year of the deal? mort pierce is the chairman of the law firm dewey and lebouffe. roger agrinaldo is the publisher of the newsletter m & a adviser. thank you very much for being with us. >> thank you. >> roger, you say the big trend in distressed m & a, turn around, things like that. >> yes, that is. if you look at where aig was about a year and a half ago, that is definitely what they're going through and they're going through a big turn around. they're forced to sell off pieces of their company. that's why one of the main reasons why this deal happened. >> so that doesn't sound like it's a healthy trend that's going to lift all boats. >> it is a healthy trend in this way, mark. basically, when transactions happen, that means that there's confidence in what's going to happen in the future. the problem may be about a year
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ago is nothing was happening. no distress deals were happening, no m & a deals were happening. now that we're seeing more distress or turn around transactions happening, that means some people at least have some confidence in what's going on in the future. >> all right. mort pierce, i should tell everyone his firm is involved in the aig deal. also the osi takeover of escity us farm ha. so he can't talk about specific deals because his firm is involved in them. in the past been involved in pretty big ones. start with acquisition of itt and disney acquiring cap city's abc. those are biggies. how do you see the m & a field right now? >> i think it's obviously improving. at the economy improves people start thinking about expanding their businesses. and one way you expand is through m & a activity. when you're in a recession, you're worried more about president bushing what you have, president bushing your business. you're not really thinking about expansion. as the economy improves, frankly
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as the credits improve and you can finance the acquisitions, activity is going to increase. >> so is is this a way to get growth into your company without hiring anyone? because these same ceos willing to do deals are not willing to hire people. >> well, you grow organically. you throw through acquisitions. it's a question of the time you want to spend and the growth trajectory. even in an acquisition, you're still employing people. i don't think it's so much about whether you want to em employ or not em employ. it's about whether you want to grow. >> i'm looking for maybe some vulture activity where they come and buy a company and then they wind up getting rid of like 20% of the workforce, thus they have expanded their company without actually benefiting the labor market at all. two other deals, i was sticking with mort for a pekd. two of these deals were all cash transactions.
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why would someone do that and what does it say about maybe the credit markets? >> well, first of all it says that the credit markets are improving if you can finance a $35 billion deal, obviously the credit markets are improving. and if you can do cash rather than stock, obviously, you don't want to sell your stock at the price it's at. you'd rather -- you'd rather do cash and you can do it in this -- you can do it today in a way that you couldn't do it a year ago. it says something very healthy about the markets. >> roger, what's your view of these all-cash deals? >> all-cash deals are fine. i mean i think it's another way to finance deals. it's obviously cheaper if you can finance it right off your balance sheet if you have cash. i do want to take issue a little bit, mark with, saying some of these turn around or distress deals are vulture deals. m & a transaction is going to fire people. >> i don't think anybody said that. i was wondering whether that was
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going on. >> i think what is going on is if you don't have transactions going on, some of these companies if they didn't have this life preserver, this lifeboat of a company taking them over, they may just go out of business all together. so yes, you might get rid of 20% of the company or 20% of the workforce but you're saving the other 80%. and you are saving the other 80% with a much healthier company strategically growing in the future. >> all right. gentlemen, thank you very much for sharing your thoughts on the subject. appreciate it. >> thank you. >> roger aguinaldo, mort pierce. up next on street sign"s we're trading the globe. while the world is watching and ditching the euro, just one global currency gaining more than any other. we're going to show you which one next. and you are looking live at a runway in charlotte, north carolina where captain sully has made his final landing.
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the miracle on the hudson pilot retiring after 30 years with usair. with fidelity, you can take your trading around the world, because now you can trade u.s. and foreign stocks online, in 12 markets, 24 hours a day, all from the same account, and settle in u.s. dollars or the local currency. plus, we'll guide you with international research and realtime quotes, so you can diversify your portfolio, wherever -- whenever. and we'll be on call around the clock, while you trade around the globe. fidelity investments. turn here.
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welcome back to "street signs" with your daily real see check i'm diana olick in washington. mortgage applications surged 15% last week, the first rise in a month, thanks to mortgage rates dipping below 5%, that brought a 17% leap in refis but home sales may be on the move as well, with purchase applications up 9%. home builder ended q1 in the black. mostly as a result of tax write-offs. shares are up 6%. and china outpaced the u.s. as the largest property investment market last year, according to cushman and wakefield doubled to $156 billion. that's a 64% decrease. check back with the realty check, up next tomorrow morning at 11:50. until then, go to the blog, realtycheck.cnbc.com. mark.
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>> all righty, thank you. as traders run from one debt scare to the next, occurrence e en -- occurrencencies are getting whipsawed. the brazilian real running up enormous deficits and looking at stagnant growth. a once risky emerging market currencies becoming the world's true safe heche? let's go trading the globe with tim seymour of emerge -- oh wow that's a weird sound of emerging money.com. and "fast money" trader. tim, good morning or good afternoon. >> mark, how are you doing. >> sorry about that, force of habit. i will not use that one no more. >> that's okay. let me tell you why i'm suspicious of this. i don't know anything about the brazilian real other than it's from brazil. but warren buffett played the brazilian real a few years ago,
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recently. >> yep. >> made a nice amount of money, but then left the real. so i'm wondering why you think the real is suddenly a strong play again? >> well i think that some the smart investors that warren buffett, sam zelwas investing in the real estate. based upon a economy that is not reliant upon exports as even possibly china as other emerging markets. different about brazil, an economy that generates less than 20% of their gdp from exports despite the fact that it is very wealthy and rich in resources. so it's a country where people are looking at the fact that the central bank may be hiking rates and that's a good thing. tamping down inflation, which brazil has had problems in the past which is actually a surplus country, a creditor country and if you look at real rates in brazil right now you're getting 5%, 6% if you are invest from overseas. so inflation's under control, gdp growth is there, not reliant upon exports and you have a
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political structure about as stabile as it's been in a long time. >> all right, you've piqued my interest. let's talk about easy first. here's a stock, brazil foods. >> again, if you want exposure to the real you often want exposure to the domestic economy what you're trying to do in emerging markets. brazil foods to me is the best analogy is it's tyson foods meets del monte, one of the largest poultry producers in the world in fact the largest exporter of poultry at this point. a number of food sources and this is a way to get the grocery stores, the consumer growth, the improvement in diet and demo grooet graphics is helping these guys so this is a stock that's trading about 15 times earnings. it's a stock that actually was beaten down like much of brazil in the first part of the year. looks interesting. earnings per share growth, probably north of 30% this year. a very exciting company. >> now you have an etf list here listed as "b", "b" as in brazil.
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zf as in frank. is that brazilian stocks so is that a currency play? >> it's a currency play. especially the ones like the real they thin that will continue to appreciate is you can finally play these things through the etf. the bzf is an etf that underplays the rial. real at the top of the segment up about 6% in the last three weeks versus radio or six week, excuse me, versus the dollar that despite the strength that we talked about with the dollar is only up about 1%. so outperforming the dollar in an up market, and that's something that emerging market currencies typically had not done, with the vix crunching lower, volatility crunching lower, you're seeing a merging market currencies crunch lower and the reals probably the best one to buy here. >> and i will end here with, i believe, that's company of a big retail sir. >> are right, sir, dbd, the ticker. the largest retailer in brazil. they announced earnings
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yesterday. earnings growth of 78%. these guys are growing through, again, the consumer purchases of home appliances. >> yep. >> also, like a walmart, it's selling groceries. so a fantastic exposure, again, a stock that was beaten up actually now in valuation you could buy, i would say a month ago or six weeks, a little long. >> all right. thank you very much, tim. appreciate it. >> thank you very much, mark. >> don't miss more of tim's international trades this friday on "squawk on the street" and of course every weekday night on "fast money." also there's a conserve way to play the real if you go to everettbank.com and this is not an endorsement. you have to investigate on your own, but everett bank will sell you cds and there may be others that do that too, they're the only ones that i'm aware of. all right, here's your "trend of the day." national car rental? that's my choice.
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all right, we are back. tonight on an all-new "american greed" they uncover the story of entrepreneur ralph aelo, using millions of dollars of
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investor's money as his own personal piggy bank. but he's desperate to keep up appearances and his lavish lifestyle for him and his a-list girlfriend hathaway. you can see the entire story unfold tonight on "american greed" at 9:00 p.m. all right we have slipped into negative territory on the stock market. it happened as president obama was urging congress to get it together and pass the health care bill. we were talking to jim cramer at the time. jim directly links the obama comment to that. so, we're in positive -- in negative territory. coming up, maria. more signs of economic recovery. is the threat of a double-dip recession out of the way? what investors need to know. live from the new york stock exchange, this is the final and most important hour of the

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